Artificial intelligence (AI) is revolutionizing drug discovery, clinical research, diagnostics, and patient care. In the pharmaceutical industry, AI-driven models accelerate drug candidate identification, optimize clinical trial design, and enhance safety monitoring. Regulatory bodies such as the FDA and EMA are developing risk-based frameworks to ensure AI tools maintain transparency, safety, and efficacy. Large language models (LLMs) and AI-driven clinical decision support systems assist in diagnostics and patient management but introduce concerns related to algorithmic bias, data privacy, and regulatory compliance. Future AI applications in personalized medicine and rare disease research hold significant potential, yet require continuous oversight to balance innovation with ethical responsibility.